My charitable donations decreased my refund. why?

[jakes_s]

When I deducted the $1000 dollars of charitable donations I made this year it decreased my state refund and increased my federal, but my total refund was less when I used them.  I ended up just deleting all my donations, but I don't understand why.  I make donations every year and it has always benefited me.

[Patrice · Accepted solution]

There comes a point when adding more deductions actually hurts your refund due to reduced credits. Good news is that making charitable deductions are optional not required. Those donations can reduce your taxable income and lower your tax bill. There are certain credits that are affected by your taxable income and if your taxable income is reduced by adding charitable donations that will also reduce income based credits thereby decreasing your refund.

[9g333]

htis don't tell me why

[Jerry6]

Shouldn't the software tell you not to add those donations?

[ydav40]

What is the solution.  I have 20 charitable contributions for 2019.  However, I noticed that by federal return is reduced significantly when they are all entered. What is the threshhold.?  What steps can I take?

[VolvoGirl]

One reason, By increasing your deductions and expenses it will decease your income and you may not be getting as many credits as before like the EIC credit. You can't go by the refund monitor until you have entered everything in. Also after you reduce your income to zero there is no more refund to get back.

Do you have more Itemized Deductions than the Standard Deduction?  That's not common since the Standard Deduction was increased.  

For 2019 the standard deduction on 1040 line 9 amounts are:

Single 12,200 + 1,650 for 65 and over or blind

HOH 18,350 + 1,650 for 65 and over or blind

Joint 24,400+ 1,300 for each 65 and over or blind

Married filing Separate 12,200 + 1,300 for 65 and over or blind